Moody’s rates W.R. Berkley notes Baa3 (hyb)

Moody's Investors Service said it assigned a Baa3 (hyb) rating to an offering of 40-year subordinated notes issued by W.R. Berkley Corp. (senior debt Baa2) off its multi-purpose shelf registration.

The outlook is stable.

Net proceeds are expected to be used for general corporate purposes.

Moody's said the ratings reflect W.R. Berkley's strong franchise within the commercial and specialty insurance segment, its diversified revenue streams, disciplined approach to underwriting, and its strong earnings and good risk-adjusted capitalization.

Somewhat offsetting these positive factors are the company's exposure to long-tail casualty businesses, which have greater reserve and pricing risk, and risks associated with entering new lines of business where historical actuarial data is limited, the agency said.

The company has also demonstrated an opportunistic appetite for elevated operating and financial leverage at times during the underwriting cycle, which Moody's believes tempers financial metrics that generally appear strong for the company's rating category.

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